The entry recorded by a law firm when it provides a service it previously recorded as Deferred Revenue includes a:
A)credit to Service Revenue.
B)debit to Cash.
C)credit to Accounts Receivable.
D)credit to Deferred Revenue.
E)credit to Cash.

Question

Quizplus · Accepted Answer

The entry includes a debit to Deferred Revenue (to decrease this liability account)and a credit to Service Revenue.

The Entry Recorded by a Law Firm When It Provides